2014 (11) TMI 814 - HC - Income Tax

Allowability of depreciation on gas toner - Whether the Tribunal is right in confirming the order passed by the CIT(A) holding that depreciation on gas toner is allowable at the rate of 100% treating the same as gas cylinders, as against depreciation at the rate of 25% granted by the AO Held that - As decided in assesse s own case for the earlier assessment year, it has been held that the Tribunal rightly allowed 100% depreciation on the gas cylinder which was mounted on vehicle, the gas cylinder had a capacity of more than 1000 kg., still Tribunal held it to be gas cylinder because it was used for transporting gas the order of the Tribunal is upheld Decided against revenue.

Issues:
- Challenge to judgments by the Income-tax Appellate Tribunal
- Substantial question of law regarding depreciation on gas toner
- Facts and appeals related to Tax Appeal No. 1894/2005
- Facts and appeals related to Tax Appeal No. 1896/2005
- Arguments presented by the learned advocates
- Tribunal's observations and legal precedents cited
- Decision based on legal precedents and judgments

Challenge to Judgments by the Income-tax Appellate Tribunal:
The appellant challenged the judgments and orders passed by the Income-tax Appellate Tribunal in Tax Appeal No. 1894/2005 and Tax Appeal No. 1896/2005. The substantial question of law framed in both appeals pertained to the allowance of depreciation on gas toner at a rate of 100% instead of the 25% rate granted by the Assessing Officer.

Substantial Question of Law Regarding Depreciation on Gas Toner:
The primary issue revolved around whether the Appellate Tribunal was correct in confirming the order passed by the CIT(A) regarding the allowance of depreciation on gas toner at a rate of 100%. The tribunal cited legal precedents and held in favor of the assessee based on previous decisions, including one involving a similar issue in the assessee's own case. Additionally, a decision by the High Court further supported the tribunal's stance, leading to the dismissal of the appeals by the Revenue.

Facts and Appeals Related to Tax Appeal No. 1894/2005:
The appellant filed a return of income, which was scrutinized, resulting in an assessment order. After various proceedings and appeals, the case was reopened, and the appellant challenged the order before the Income Tax Appellate Tribunal. The Tribunal's decision was then contested in Tax Appeal No. 1894/2005.

Facts and Appeals Related to Tax Appeal No. 1896/2005:
In this case, the appellant filed a return of income claiming deductions under specific sections of the IT Act. Similar to the previous appeal, the case underwent scrutiny, appeals, and ultimately reached the Income Tax Appellate Tribunal. The Tribunal's decision was then challenged in Tax Appeal No. 1896/2005.

Arguments Presented by the Learned Advocates:
During the proceedings, the learned advocates representing the parties presented their arguments. The advocate for the appellant contended that the Tribunal's view contradicted the schedule, emphasizing the clarity of the items listed. However, the Tribunal's observations and legal interpretations prevailed in the final decision.

Tribunal's Observations and Legal Precedents Cited:
The Tribunal's decision was influenced by legal precedents, including a case involving a similar issue in the assessee's own case, where depreciation on gas cylinders was allowed at 100%. Furthermore, a decision by the High Court supported the Tribunal's stance, leading to the rejection of the Revenue's appeals.

Decision Based on Legal Precedents and Judgments:
Ultimately, the High Court upheld the Tribunal's decision based on legal precedents and judgments cited during the proceedings. The Court found no merit in the Revenue's appeals, as the decisions were in favor of the assessee. Consequently, both appeals were dismissed, affirming the allowance of depreciation on gas toner at a rate of 100%.

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